Page 27

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued August 11, 2025

Page 27 of I-1530 Replacing February 17, 2025

Deleted text indicated by “” Revised/added text indicated by underscore

RESTITUTION PAYMENTS

Do not count restitution payments made by the U.S. government to individual Japanese-Americans (or their survivors) or to Aleuts who were interned or relocated during World War II.

Do not count any interest earned from these payments as income in the month of receipt, but as a resource the following month.

RETIREMENT BENEFITS

Count the total gross amount of retirement benefits as unearned income.

REVERSE ANNUITY MORTGAGES

A reverse mortgage arrangement involving the purchase of an annuity is a Reverse Annuity Mortgage (RAM). Count payments from a reverse annuity mortgage as unearned income.

REVERSE MORTGAGES (AKA HOME EQUITY CONVERSION MORTGAGES)

Reverse mortgages are plans which allow homeowners to borrow, via a mortgage contract, some percentage of the appraised value of their home as long as it is occupied as their primary residence. Homeowners retain ownership of the home and receive periodic payments (or a line of credit) up to the specified amount. Reverse mortgages are due and repaid when the last surviving borrower dies, sells the home or permanently moves out.

Permanently moves out generally means the homeowner has not lived in the home for twelve consecutive months. There may be other “conditions of default” written into the agreement by the lender which also cause the loan to become due.

Do not count payments received from a Reverse Mortgage. These payments are considered loan proceeds. Unspent portions of the payments become a resource the month following receipt.

See also Reverse Annuity Mortgages.